Gold prices stabilize; CPI data release tonight; Trump urges Iran deal; Roku and Applied Materials surge.

Trump: The U.S. "Must" Reach an Agreement with Iran

On February 12, U.S. President Donald Trump stated that the U.S. "must" reach an agreement with Iran, warning that the situation could become "very serious" otherwise. He emphasized his willingness to negotiate for as long as necessary, but if an agreement is not reached, a "second phase" would follow, which he claimed would be very difficult for Iran. Trump also mentioned that discussions with Israeli Prime Minister Netanyahu were "very good," but the outcome ultimately depends on him.

Russia's Proposal to Re-engage with the Dollar System

A leaked internal document from Russia indicates that the Kremlin is considering using a "return to the dollar system" as leverage to build a broad economic partnership with the Trump administration. The proposal outlines seven potential economic interests between the U.S. and Russia, contingent on a resolution to the Ukraine conflict. This strategy could significantly alter global financial dynamics.

New York Fed Report: Consumers Bear Tariff Costs

The New York Federal Reserve reported that U.S. consumers and businesses have absorbed nearly 90% of the costs from tariffs imposed by the Trump administration. The average tariff rate rose from 2.6% to 13% last year, with U.S. entities bearing the brunt of the tariff impacts.

Gold Prices Stabilize Amid Market Sell-off

After a significant drop in gold prices, the market has stabilized, with spot gold trading around $4920 per ounce. Investors are now focused on upcoming U.S. inflation data, which could influence the Federal Reserve's future actions.

Danish Pension Fund Considers Reducing U.S. Exposure

Denmark's second-largest pension fund, ATP, is reevaluating its investment risks in the U.S. and may reduce its exposure to the private market. The CEO stated that while the U.S. has performed well, sustainability is a concern.

U.S. Home Sales Experience Largest Drop in Four Years

The National Association of Realtors reported that U.S. existing home sales fell to an annualized rate of 3.91 million in January, marking an 8.4% decline, the largest monthly drop since April 2022. Severe winter weather may have contributed to this decline.

Major U.S. Indices Decline, Tech Stocks Suffer

All three major U.S. indices fell, with the Nasdaq dropping over 2%. Notable tech stocks like Apple and Tesla also saw significant declines, attributed to rising concerns over AI's impact on corporate earnings.

Silver Prices Plummet, Defensive Stocks Rise

Silver futures dropped about 10%, signaling a shift in market sentiment. Defensive stocks like Walmart and Coca-Cola saw gains as investors sought stability amid rising risk aversion.

Rivian and Other Companies Report Earnings

Rivian announced a significant revenue drop but plans to launch its R2 electric SUV in the second quarter. Meanwhile, other companies like Roku and McDonald's reported strong earnings, with McDonald's achieving its highest U.S. sales growth in two years.

Conclusion

As the U.S. prepares for key economic data releases, market participants are closely monitoring developments in both domestic and international arenas, including potential agreements with Iran and shifts in global financial strategies.